Amid persistently higher inflation in Bangladesh for more than a year, the low- and middle-income groups are struggling to meet their daily expenses.
The reason for continued high consumer prices in the country despite prices dropping in the international market is a combination of policy and institutional failure.
On April 2, the World Bank forecast that inflation in Bangladesh might stay elevated at 9.6 percent in fiscal year (FY) 2023-24 before moderating to 8.6 percent in FY 2024-25.
Even rate hikes cant tame a raging inflation, so what is the solution ?
Businesses in Bangladesh will face challenges in managing the impacts of higher inflation and exchange rate in 2024 as well while the cost of production and operation may increase amid the rising bank interest, several business and corporate leaders warn
Most South Asian countries succeeded in reining inflation in 2023 in a major relief for their populations who struggled after prices spiralled owing to the shocks stemming from the lingering impacts of the coronavirus pandemic and the Russia-Ukraine war
Food inflation at 12.56 percent in October this year is the highest in a decade
Says CPD’s Mustafizur Rahman
Most of the macroeconomic indicators of Bangladesh have been in bad shape for the last several months owing to external and internal factors, intensifying people’s suffering as consumer prices surged to record levels.
Amid persistently higher inflation in Bangladesh for more than a year, the low- and middle-income groups are struggling to meet their daily expenses.
The reason for continued high consumer prices in the country despite prices dropping in the international market is a combination of policy and institutional failure.
On April 2, the World Bank forecast that inflation in Bangladesh might stay elevated at 9.6 percent in fiscal year (FY) 2023-24 before moderating to 8.6 percent in FY 2024-25.
Even rate hikes cant tame a raging inflation, so what is the solution ?
Businesses in Bangladesh will face challenges in managing the impacts of higher inflation and exchange rate in 2024 as well while the cost of production and operation may increase amid the rising bank interest, several business and corporate leaders warn
Most South Asian countries succeeded in reining inflation in 2023 in a major relief for their populations who struggled after prices spiralled owing to the shocks stemming from the lingering impacts of the coronavirus pandemic and the Russia-Ukraine war
Food inflation at 12.56 percent in October this year is the highest in a decade
Says CPD’s Mustafizur Rahman
Most of the macroeconomic indicators of Bangladesh have been in bad shape for the last several months owing to external and internal factors, intensifying people’s suffering as consumer prices surged to record levels.
Bangladesh Bank is preparing a roadmap for the next government to address the three major issues of exchange rate instability, high inflation and high defaulted loan ratio bearing upon the economy.